One suggestion is that the company reposition its water as a premium product, justifying a higher price. If successful, the company believes that it could charge 20% more for its water than it does now. 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? The maximum sales loss would be 25% before they can tolerate before a 20% price increase, which amount to 1,500 bottles per day instead of 2,000.
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices. This is what some firms in the leisure industry will aim to do, for instance, Cinemas will hope to achieve the highest level of profits. Although most firms in the leisure industry aim to maximise profit, some firms have other main objectives, such as to maximise growth. Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible.
Answer Reflective practice is important as it enables you to achieve a better understanding of yourself, your skills, competencies, knowledge and professional practice. Identifying what you have learnt requires you to think about your experiences, and consider the outcomes, in order to evaluate the experience, and identify your thoughts, feelings and understanding of the relevant issues. 3. How reflective practice contributes to improving the quality of service provision. Answer Reflective practice is important for everyone.
They could open late instead of mornings and get rid of slow peak mornings. Also, since they have a certain amount of people starting they could cut back, because they are running slow they don’t need as much people. Next, they can run more specials such as if they buy a certain amount of food or drinks they get a game for free. Lastly, they can raise prices to increase profits. These solutions can cut expense costs, and make more profit, because you aim for the peak period with specials, and with raised prices.
Despite scouting for smaller opportunities, a first round of $250 million funding may not be sufficient for Brazos to invest in any more than a few firms which gives them limited scope for diversification. This places greater pressure on a first time fund and in particular, Brazos’ motivation to add value by simply promoting organic growth in cash flow and operational efficiency in the hope of enhancing industry scale. Additionally, the existence of dependable cash flow and management make it easier to acquire debt financing and increase leverage which suits a first time fund. Furthermore, Brazos’ previous relationships and experience in the market allowed it to mitigate aspects of first fund bias which inhibit the entry of many prospective VC firms into the industry. Brazos’ GTT method is one of its points of differentiation which appear limited in its application to a variety of firms outside the ‘family-owned business’ model.
| The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Provided money can earn interest, any amount is worth more the sooner it is received (“Time Value of Money,” n.d.). | Provide a real-world example for the time value of money. | An example would be depositing money into a savings account now and letting it earn interest. This amount of money will be worth more later because it will earn interest.
more than renting, which seems too small a premium, given all the advantages of owning. However, ownership is also more risky. Since they can cover up to $5,923 of shortfall, if the 1998-2000 budget is exactly correct, there is considerable margin for error. Any remaining surplus is available for mortgage reduction (on the anniversary dates you can usually prepay some part of the balance) and RRSP contributions. Thus, they can buy a house in four years time, and possibly earlier.
This could be because Bristol has already undergone a regeneration process. This would mean that employment was quite good due to new businesses moving into the area, which would in turn lead to more money in the local economy. This is called the multiplier effect, and if a city manages to achieve it then they can be seen as successful. This could also be compared to London, as the levels of household deprivation are very similar. This could be due to the size of the city, as the population in London is huge and therefore the results are varied.
A. Demographics (Local, City, Region, SMSA), with trend analysis. 1-Population of area: a) Gender and age distribution: Hard Rock Café usually attracts certain age and gender frame (young and middle age adults, and men more than women) b) Population density: when it is high in the location being researched that increases the probability of getting a high costumer flow or vice versa. c) Population Growth: if statistics shows a positive increasing rate in the location being researched that will raise the costumer flow or vice versa. 2-Economic Indicators: a) Gross Domestic Product (GDP): it is less risky to invest in a country with a high GDP.